Class 12 Business Administration Notes · GSEB
Process of Staffing (Recruitment)
Process of Staffing (Recruitment) — finding the right applicants from inside and outside the organisation. GSEB Class 12 Commerce notes covering recruitment's meaning, its triggers, six internal sources, seven external sources, and how recruitment differs from selection.
Last updated: 27 Oct 2026
Notes
Recruitment — Meaning and Triggers
Notes — the key lines
- Recruitment finds probable employees and makes them apply.
- It is triggered by a new enterprise, expansion, or an employee who resigns, dies or retires.
- Broader sense: right time, right number, right place, right qualifications.
“Contented, experienced, creative and honest staff is an invaluable asset of business.”
Recruitment is to be made when a new enterprise is established, an existing unit is expanded, or an employee resigns, dies or retires.
Recruitment should rest on suitable qualifications, skills, knowledge and sincerity, not on influence, corruption or nepotism — so a scientific method of recruitment should be adopted.
In the ordinary sense, recruitment is the process of looking for probable employees and making them apply for the job.
In the broader sense, it is the process of acquiring at the right time, in the right number, in the right place, persons with the right qualifications. Recruitment is a continuous process.
Trap — Recruitment stops at applications — selection begins after them.
Internal Sources of Recruitment
Notes — the key lines
- Six internal sources: promotion, transfer, friends and relatives, recalled retrenched employees, promotion with transfer, waiting list.
- Internal hiring boosts morale and loyalty and is quick.
- The waiting list keeps past applicants in merit order.
Whenever a post is vacant or a new position is created, promotion is given on the basis of the existing employee’s work, ability, honesty, skill, loyalty and qualifications. It boosts morale and loyalty, and brings higher salary, status, power and responsibility.
If a department faces a shortage, surplus employees of another department can be transferred to it, keeping their qualifications in mind. The shortage is rectified without a fresh hire.
Employees are asked to recommend qualified friends and relatives for a vacancy, and recruitment is made from their applications. It boosts morale because employees feel part of the process.
Former employees who were retrenched, or who left voluntarily and joined elsewhere, can be recalled on the basis of their experience, knowledge and efficiency.
Existing employees can be transferred with a promotion to another branch under the same management, on the basis of efficiency, experience and loyalty. It boosts morale and enthusiasm — for example, a transfer with promotion to the employee’s native place.
A waiting list holds candidates who applied in the past but could not be absorbed. It avoids repeating the advertisement and recruitment process; candidates are recruited later as per their order of merit.
| Internal source | Best used when |
|---|---|
| Promotion | A higher post is vacant and an existing employee has the work record, ability, honesty, skill, loyalty, and qualifications. |
| Transfer | One department has surplus staff and another has a shortage. |
| Friends and relatives | Employees can recommend qualified candidates for a vacancy. |
| Recalling retrenched employees | Experienced former employees are available after retrenchment or voluntary exit. |
| Promotion with transfer | The employee is willing to move to another branch with a promotion. |
| Waiting list | Past applicants were not absorbed but can be recruited later in merit order. |
Trap — A waiting list is not a rejected list — it is past applicants kept in merit order.
External Sources of Recruitment
Notes — the key lines
- Seven external sources: advertisement, employment exchange, educational institutes, trade unions, contractors, gate recruitment, internet.
- Match the source to the job: gate for daily wages, contractors for unskilled, campus for specialised freshers, portals for skilled.
- Contractors carry an exploitation risk.
Applications are invited through advertisements in newspapers, business journals and periodicals for specific posts, and candidates can also apply online after seeing the advertisement on the internet, TV or websites. A large number of applications can arrive from distant corners of the country.
Public and private employment exchanges prepare a list of unemployed candidates with their name, address, qualifications, experience and skills, and supply that list to a business enterprise when asked. The enterprise then selects suitable candidates from it.
Technological institutes, colleges and universities conduct campus recruitment and supply specialised, knowledgeable personnel. Names can be obtained from heads of institutions through campus interviews; placement camps are held every year at institutes like Indian Institute of Management (IIM), Indian Institute of Technology (IIT).
Trade unions keep a list of employees. When work falls, workers may be retrenched; when the workload rises again, those retrenched workers can be recruited with the union’s help. This often happens in textile and mining industries.
A contract is made between the enterprise and a contractor for the supply of workers. The contractor stays in contact with various types of labourers and arranges them at fair wages when required. This is common in construction, mining and tea plantations; unskilled labour is usually supplied this way, and there is a possibility of exploitation.
Workers are recruited by placing a notice at the factory gate. This method is more suitable for daily wages.
Agencies register prospective candidates’ biodata on their websites, and a business unit can use that facility when a vacancy arises. Application, tests, results and appointments are all done online. A candidate well-versed with computers and the internet benefits most; the method generally suits skilled employees.
Trap — Contractors supply unskilled labour and carry an exploitation risk — not the route for skilled hires.
Recruitment vs Selection
Notes — the key lines
- Selection picks the proper candidate from the applications received.
- It is a part of the recruitment process, and comes after recruitment.
- The application form is the boundary line between the two.
Selection means to select the proper candidate from the applications received. Selection is a part of the recruitment process. The selection process varies with the organisation’s size, type and the kind of employees required.
| Aspect | Recruitment | Selection |
|---|---|---|
| Nature | The process of looking for probable employees and making them apply for the job. | Selecting the proper candidate from the applications received. |
| Relationship | Recruitment comes first. | Selection is a part of the recruitment process. |
Trap — Selection is part of the recruitment process, so the two are not parallel stages.
Exam Questions
Exam Questions
Attempt first; then open the answer.